Asian markets open lower on AI stock rout, rising US yields

September 15, 2026 (MLN): Asian markets opened lower on Tuesday, with major regional indices coming under pressure as a sell-off in artificial intelligence stocks, rising US Treasury yields, and elevated oil prices weighed on investor sentiment.

Japan’s Nikkei 225 fell 0.25% in early trading, while the Topix declined 0.24%. South Korea’s Kospi slipped 0.43%, with the Kosdaq down 0.33%. Australia’s S&P/ASX 200 also lost 0.46%.

The weakness followed a decline on Wall Street, where investors pulled back from AI-related stocks amid concerns over the pace of AI development and growing safety risks, according to CNBC.

Nvidia dropped around 3%, while Corning, a specialty glass and fiber-optic company, plunged 13%. The iShares AI Innovation and Tech Active ETF declined nearly 4%.

Investor sentiment was further affected by higher US Treasury yields, with the 10-year yield briefly crossing 5% on Monday to reach its highest level since October 2023.

Oil prices also remained elevated after Saudi Arabia shut a key pipeline that bypasses the Strait of Hormuz. Brent crude settled above $105 per barrel, while West Texas Intermediate crude closed above $101.

Markets are also focused on the US Federal Reserve’s monetary policy decision due Wednesday. Fed funds futures are pricing in around a 92% probability of a 25-basis-point rate hike from the current target range of 3.5%-3.75%.

Christopher Hodge, chief economist for the US at Natixis CIB Americas, expects the Fed to raise its policy rate to an upper bound of 4.0% at this week’s meeting.

He expects the central bank to frame the move as a discrete decision without pre-committing to further rate adjustments, preserving flexibility to respond to future economic and market shocks.

Later trading remained mixed across the region, with Japan’s Nikkei 225 gaining 0.6%, while the Topix eased 0.11%. South Korea’s Kospi declined 0.25%, whereas the Kosdaq advanced 1.78%.

Hong Kong’s Hang Seng Index fell 0.3%, mainland China’s CSI 300 declined 0.18%, and Australia’s S&P/ASX 200 dropped 0.7%.

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